In the Markets for Goods and Services in the Circular-Flow

question 31

Multiple Choice

In the markets for goods and services in the circular-flow diagram,

• A)households and firms are both buyers.
• B)households and firms are both sellers.
• C)households are buyers and firms are sellers.
• D)households are sellers and firms are buyers.

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Definitions:

Rhode Island

The smallest state by area in the United States, located in the New England region, known for its sandy shores and maritime history.

Mass Production

The manufacture of large quantities of standardized products, often on assembly lines, which significantly reduces the production cost per unit.

Steam Power

A form of energy produced by boiling water to create steam which drives mechanical devices, playing a crucial role in the Industrial Revolution.

Newspapers

Printed publications consisting of sheets of paper containing news, information, advertisements, and other content, distributed at regular intervals.